February 04, 2005
Getting a handle on contract documents
When a major supermarket chain was being acquired in a big 1980s leveraged buyout, there was a nasty snag in the process: the fact that each of the company's thousands of stores had its own negotiated lease agreements, the clauses of which (including such things as non-assignment) varied greatly. Tracking down those leases and going over each one took a staggering amount of attorney time.
That's just one example of a wider problem: the fact that most big companies have warehouses full of contract documents and little knowledge of what they say. This, writes Louis Columbus of TechNewsWorld, leads them to miss deadlines, miss sales, and incur penalties and extra charges. But Columbus says that modern contract management software—"the emergency dentist of enterprise software"—can improve a firm’s contracting processes and save it a ton of money.
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